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Real-time knowledge of the slip angle in a vehicle is useful in many active vehicle safety applications, including yaw stability control, rollover prevention, and lane departure avoidance. Sensors to measure slip angle, including two-antenna GPS systems and optical sensors, are too expensive for ordinary automotive applications. This paper develops a real-time algorithm for estimation of slip angle using inexpensive sensors normally available for yaw stability control applications. The algorithm utilizes a combination of model-based estimation and kinematics-based estimation. Compared with previously published results on slip angle estimation, this present paper compensates for the presence of road bank angle and variations in tire-road characteristics. The developed algorithm is evaluated through experimental tests on a Volvo XC90 sport utility vehicle. Detailed experimental results show that the developed system can reliably estimate slip angle for a variety of test maneuvers.